Tech

Student Finance FinTech Raises £ 1.1 Million

StepEx is a key investor in venture studio BBVA Anthemis Venture Partnership, raising £ 1.1 million in initial funding.

The startup from the UK offers an alternative system of student finance based on future income estimates to democratize access to graduate qualifications.

StepEx has set out to remove the barriers that prevent the majority of students from accessing high-level graduate education through a financial system based on the calculation of future expected income using artificial intelligence technology. Through StepEx’s future revenue contract, students will not pay the college prepaid fee, but will pay the college a percentage of their income only if they exceed the minimum wage for a period of time after graduation.

It replaces the traditional system of funding graduate research with access to loans based on past income. StepEx believes that this type of loan limits the access of young, non-wealthy people to graduate and technical qualifications and limits their upward social mobility.

“The best courses are too expensive for the majority of potential students,” explains StepEx founder and CEO Daniel George. “Debt is an inadequate solution to this problem and there are lending terms based on past income.” Instead, StepEx has a database of the earnings of hundreds of thousands of graduates in the labor market and specific professions. Predict the applicant’s future revenue using machine learning tools that interlink with various key factors related to your level of employability.

“StepEx has created a solution that will bring equal benefits to students and institutions, but it is also an attractive investment for lenders, combining strong returns with true social impact. We are confident in the team’s ability to make this a mainstream option to transform student finances, “said Christi Theiss, head of BBVA’s BBVA & Anthemis Venture Partnership, project sustainability and financial inclusion. It also emphasizes the positive impact on.

In the UK, StepEx has partnered with prestigious universities such as London Business School, Cambridge University and Cranfield University, as well as course providers focused on demanding technical skills such as coding and AI. Innovative FinTech start-ups are powerful leading universities for implementing future earnings agreements in Spain, Germany, France (as one of the confirmed partners of INSEAD Business School) and other European countries. I have a pipeline.

The demand for new types of student finance is high. StepEx expects to sign a contract by the end of 2021 that is three times as much as originally calculated.

StepEx is the only regulated entity in Europe that offers future income agreements (approved by the Financial Conduct Authority (FCA)). The FCA is a behavioral regulator of approximately 60,000 financial services companies and financial markets in the United Kingdom and is an independent public agency that guarantees its honesty, impartiality and effectiveness.

The latest funding will help the company develop its machine learning models and user platforms, as well as expand its senior team. In addition, BBVA Anthemis Venture Partnership will continue to support other aspects of the business, including product design guidance, business model tweaking, talent attraction, connection building, business development assistance, and future funding strategy setting. Offers.

Student Finance FinTech Raises £ 1.1 Million

Source link Student Finance FinTech Raises £ 1.1 Million

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